Land Ownership In Thailand For Foreigners

Buying A Land In Thailand: Land Ownership In Thailand For Foreigners

Looking to buy land in Thailand as a foreigner? Whether you’re envisioning a real estate development, planning to construct a hotel, or simply engaging in strategic land banking, this comes with its unique set of considerations and intricacies. Discover the various avenues and legal nuances for foreign individuals in ‘Land Ownership In Thailand For Foreigners.’ This captivating Southeast Asian destination offers different pathways for foreigners seeking to own a piece of Thailand’s enchanting landscape, be it a private estate, a business venture, or a land investment.

1. Utilizing a Thai Company

Foreigners can navigate land ownership by establishing a Thai company. In this structure, at least 51% of the company’s shares must be owned by Thai nationals, leaving 49% for foreign investors. The Thai Limited Company is the most common choice, and a capital investment of two million baht per work permit is required.

2. Board of Investment (BOI)

Investors who inject a minimum of one million baht into Thailand are entitled to buy up to 20 Rai of land for residential purposes for employees, or 10 Rai for executives and directors. Approval depends on factors like the company’s size and activities, subject to the Board of Investment’s discretion. Additional privileges may be granted if the land is used for BOI-promoted activities.

3. Marriage to a Thai National

Since 1999, amendments in Thai property laws have allowed a foreigner married to a Thai national to own land. However, the land must be registered in the Thai spouse’s name, and a declaration affirming that the funds are of the Thai national, not the foreigner, is required.

4. Lease of Property

Leasing land is a viable option, wherein a foreigner leases land or a house from a Thai national, with leases extending up to 30 years. Renewal is possible but not automatically enforceable. Leases over three years must be registered at the Land Department for legal validity.

5. Structured Ownership

Through the Right of Superficies, a company or Thai spouse can grant a foreigner the right to own constructions on the land without owning the land itself. This right is extendable for 30 years and can be renewed, subject to the Land Officer’s discretion.